Employees’ PF account gets popular

Shekhar Regmi

Biratnagar, April 4:

Various private industries in the eastern region have increasingly shown their interest to open employees’ provident fund accounts.

There are already over two dozen industries and other organisations who have come to deposit provident fund in the local office of the employees’ provident fund, says the office.

Head of the office, Durga Prasad Subedi informed that the number of companies opening provident fund accounts during the last fiscal year was seven and this year another company is planning to enter into the agreement. The reason could be social as it guarantees security, he added. There is a provision that any company with over 10 employees can make an agreement with the employees’ provident fund for depositing fund with it.

The Employees’ Provident Fund Act, 019 states that all privileges enjoyed by a government office can be extended to a private company as well.

As per the arrangement, 10 per cent of employee’s salary and a similar amount from the employer go to the provident fund every month. Subedi added, “The fund provides five per cent as interest rate annually and other facilities.”

Company employees have been exerting pressure on employers to join the provident fund scheme. The fund office said employers and workers’ unions have been visiting the office for more information on the scheme. Civil servicemen, police, army, educational and various other organisations are transacting with the fund’s office. Meanwhile, employees seeking special loans from the fund’s office, have suddenly surged.

The number of people visiting the office stood at 150 on a daily basis, while the amount being Rs 4 million on an average, office head Subedi said.